Special MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA

Tuesday, August 26, 2008

9:00 A.M.

1. CALL TO ORDER, ROLL CALL, DETERMINATION OF QUORUM

President Shaikewitz called the meeting to order at 9:00 a.m.

Directors Present:

Directors Jan E. Abel, Samuel Frye, W. Douglas Morgan, Richard Shaikewitz, and Larry Wilson

Directors Absent:

None

Staff Present:

Tom Mosby, General Manager

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

Chuck Evans, Goleta Water District

2. PUBLIC FORUM

There were no members of the public present who wished to speak on items not on the agenda.

3. CONSENT CALENDAR

Following discussion, it was moved by Director Abel, seconded by Director Morgan, and unanimously carried to approve the Consent Calendar as amended.

4. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF July 28, 2008

Director Abel reported on the subject meeting.

B. CACHUMA OPERATION AND MAINTENANCE BOARD Meetings OF July 21 and July 28, 2008

Director Abel reported on the subject meetings. Mr. Evans discussed the threat of a potential quagga mussel infestation at Cachuma with the Board and presented plans for cost sharing in the preventive protocol developed by the County. He suggested that COMB consider contributing with the proviso that no further funds would be forthcoming. The proposal is to use unexpended funds from last year’s COMB budget. Mr. Wullbrandt suggested that COMB offer to reimburse 1/3 of actual costs based on receipts, rather than 1/3 of the projected costs in advance. It was the consensus of the Board to submit a request to the First District Supervisor’s office for a staff member to make a presentation to the Board on plans for quagga control at Cachuma with specific details and cost analysis.

It was the consensus of the Board that Counsel Wullbrandt attend the public comment meeting on the draft environmental document for the Cachuma RMP in Solvang, to comment on the Board’s behalf and report back to the Board.

5. Board of Directors

A. Discussion of Public Hearing, August 19, 2008 and Public Meeting, August 20, 2008

The Board discussed the subject meetings and the process for response to customer protests and comments. The Directors also gave the President their opinions on whether public meetings and hearings should be held in the afternoon or evening.

6. District Business Report

A. Water Sales Report for July 2008

Mr. Mosby presented the Water Sales Report for July and answered Directors’ questions.

B. June 2008 Revenue and Expense Report

Mr. Mosby presented the Revenue and Expense Report for June and answered Directors’ questions.

C. Position Adjustment – Conservation Coordinator

Mr. Mosby presented this item and answered Directors’ questions. Following discussion, it was the decision of the Board to postpone the vote on this item to allow staff to present more detailed information on the recommendations with a job description and salary range.

D. Resolution No. 2048 — Board Authorization of Signatories for Checking Accounts at Santa Barbara Bank and Trust

It was move by Director Abel seconded by Director Morgan, and carried by the following roll call vote to approve Resolution No. 2048:

AYES: Directors Abel, Frye, Morgan, Shaikewitz, and Wilson

NOES: None

ABSTAIN: None

7. District Operations Report

A. status Report on San Luis Obispo dry year water purchase program (Supplemental state water)

Mr. Mosby presented this report and answered Directors’ questions.

B. WATER SUPPLY UPDATE 07/08

Several amendments were made to this report in response to input from Counsel and the Board. The revised report will be presented to the Board at the next meeting.

C. dinsmore lane water main replacement project

Mr. Mosby presented this report and answered Directors’ questions. Following discussion it was moved by Director Frye, seconded by Director Morgan, and unanimously carried to appropriate additional funding in the amount of $13,600 from the 1998A Bond funds to cover outside contractor and materials costs which exceeded the budget on this project and to authorize the signing and recording of the Notice of Completion for the project.

8. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

Mr. Mosby updated the Board on District activities not covered elsewhere in the agenda.

B. Water Works Operations Report

Mr. Mosby presented this report and answered Directors’ questions.

9. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meeting Of July 24, 2008

Director Shaikewitz reported on the subject meeting.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF July 28, 2008

Director Wilson reported on the subject meeting and also the meeting of August 25, 2008.

C. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee had not met since the last Board meeting, but will be meeting in September to begin work on the fall newsletter and other matters.

D. OPERATIONS COMMITTEE

Directors Frye and Shaikewitz reported that the activities of the Operations Committee had been covered elsewhere in the agenda.

E. FINANCE COMMITTEE

Directors Wilson and Morgan reported that the activities of the Finance Committee had been covered elsewhere in the agenda.

10. Closed Session

A. Closed Session Pursuant to Government Code Section 54957(b)(1) – General Manager’s Review

The Board adjourned to closed session at 12:25 p.m. to discuss the above item.

The Board reconvened in open session at 12:48 p.m. It was moved by Director Abel, seconded by Director Shaikewitz, and unanimously carried that Tom Mosby be compensated $5,000 per month over the next four months for the extra workload he will be incurring. This is not an increase in his base salary. His regular performance and compensation review will occur on or about his anniversary date.

11. AGENDA ITEM REQUESTS

There were no requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for September 16, 2008.

12. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 12:52 p.m.

Approved:

__________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary